Central Banks
RBI Keeps Rates on Hold as New Modi Administration Awaited
- Benchmark rate left at 6.5%; two MPC members dissented
- GDP growth forecast for fiscal year raised to 7.2% from 7%
The Reserve Bank of India (RBI) headquarters in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
India’s central bank left its benchmark interest rate unchanged, as expected, keeping its focus on inflation amid policy uncertainty following an unexpected election result.
The Monetary Policy Committee kept the benchmark repurchase rate at 6.5% Friday, and stuck to its relatively hawkish stance of “withdrawal of accommodation.” Two of the six MPC members voted for a cut, compared with one in the previous meeting.